Components of IAM
IAM uses the components described in this section. To better understand how the components fit together, see Example Scenario.
RESOURCE
The cloud objects that your company's employees create and use when interacting with Oracle Cloud Infrastructure. For example: compute instances, block storage volumes, virtual cloud networks (VCNs), subnets, route tables, etc.
USER
An individual employee or system that needs to manage or use your company's Oracle Cloud Infrastructure resources. Users might need to launch instances, manage remote disks, work with your virtual cloud network, etc. End users of your application are not typically IAM users. Users have one or more IAM credentials (see User Credentials).
GROUP
A collection of users who all need the same type of access to a particular set of resources or compartment.
DYNAMIC GROUP
A special type of group that contains resources (such as compute instances) that match rules that you define (thus the membership can change dynamically as matching resources are created or deleted). These instances act as "principal" actors and can make API calls to services according to policies that you write for the dynamic group.
NETWORK SOURCE
A group of IP addresses that are allowed to access resources in your tenancy. The IP addresses can be public IP addresses or IP addresses from a VCN within your tenancy. After you create the network source, you use policy to restrict access to only requests that originate from the IPs in the network source.
COMPARTMENT
A collection of related resources. Compartments are a fundamental component of Oracle Cloud Infrastructure for organizing and isolating your cloud resources. You use them to clearly separate resources for the purposes of measuring usage and billing, access (through the use of policies), and isolation (separating the resources for one project or business unit from another). A common approach is to create a compartment for each major part of your organization. For more information, see Setting Up Your Tenancy.
TENANCY
The root compartment that contains all of your organization's Oracle Cloud Infrastructure resources. Oracle automatically creates your company's tenancy for you. Directly within the tenancy are your IAM entities (users, groups, compartments, and some policies; you can also put policies into compartments inside the tenancy). You place the other types of cloud resources (e.g., instances, virtual networks, block storage volumes, etc.) inside the compartments that you create.
POLICY
A document that specifies who can access which resources, and how. Access is granted at the group and compartment level, which means you can write a policy that gives a group a specific type of access within a specific compartment, or to the tenancy itself. If you give a group access to the tenancy, the group automatically gets the same type of access to all the compartments inside the tenancy. For more information, see Example Scenario and How Policies Work. The word "policy" is used by people in different ways: to mean an individual statement written in the policy language; to mean a collection of statements in a single, named "policy" document (which has an Oracle Cloud ID (OCID) assigned to it); and to mean the overall body of policies your organization uses to control access to resources.
HOME REGION
The region where your IAM resources reside. All IAM resources are global and available across all regions, but the master set of definitions reside in a single region, the home region. You must make changes to your IAM resources in your home region. The changes will be automatically propagated to all regions. For more information, see Managing Regions.
FEDERATION
A relationship that an administrator configures between an identity provider and a service provider. When you federate Oracle Cloud Infrastructure with an identity provider, you manage users and groups in the identity provider. You manage authorization in Oracle Cloud Infrastructure's IAM service. Oracle Cloud Infrastructure tenancies are federated with Oracle Identity Cloud Service by default.
https://docs.cloud.oracle.com/en-us/iaas/Content/Identity/Concepts/overview.htm

Oracle Cloud Infrastructure's security approach is based on seven core pillars. Each pillar has multiple solutions designed to maximize the security and compliance of the platform and to help customers to improve their security posture.
High Availability: Offer fault-independent data centers that enable high-availability scale-out architectures and are resilient against network attacks, ensuring constant uptime in the face of disaster and security attack.
Customer Isolation: Allow customers to deploy their application and data assets in an environment that commits full isolation from other tenants and Oracle's staff.
Data Encryption: Protect customer data at-rest and in-transit in a way that allows customers to meet their security and compliance requirements with respect to cryptographic algorithms and key management.
Security Controls: Offer customers effective and easy-to-use application, platform, and network security solutions that allow them to protect their workloads, have a secure application delivery using a global edge network, constrain access to their services, and segregate operational responsibilities to reduce the risk associated with malicious and accidental user actions.
Visibility: Offer customers comprehensive log data and security analytics that they can use to audit and monitor actions on their resources, allowing them to meet their audit requirements and reduce security and operational risk.
Secure Hybrid Cloud: Enable customers to use their existing security assets, such as user accounts and policies, as well as third-party security solutions, when accessing their cloud resources and securing their data and application assets in the cloud.
Verifiably Secure Infrastructure: Follow rigorous processes and use effective security controls in all phases of cloud service development and operation. Demonstrate adherence to Oracle's strict security standards through third-party audits, certifications, and attestations. Help customers demonstrate compliance readiness to internal security and compliance teams, their customers, auditors, and regulators.
Reference:
https://docs.cloud.oracle.com/en-us/iaas/Content/Security/Concepts/security_overview.htm

Oracle Cloud Infrastructure Compute lets you provision and manage compute hosts, known as instances
. You can launch instances as needed to meet your compute and application requirements. After you launch an instance, you can access it securely from your computer, restart it, attach and detach volumes, and terminate it when you're done with it. Any changes made to the instance's local drives are lost when you terminate it. Any saved changes to volumes attached to the instance are retained.
Oracle Cloud Infrastructure offers both bare metal and virtual machine instances:
1) Bare Metal: A bare metal compute instance gives you dedicated physical server access for highest performance and strong isolation.
2) Virtual Machine: A virtual machine (VM) is an independent computing environment that runs on top of physical bare metal hardware. The virtualization makes it possible to run multiple VMs that are isolated from each other. VMs are ideal for running applications that do not require the performance and resources (CPU, memory, network bandwidth, storage) of an entire physical machine.
An Oracle Cloud Infrastructure VM compute instance runs on the same hardware as a bare metal instance, leveraging the same cloud-optimized hardware, firmware, software stack, and networking infrastructure.